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Closing Costs

One-time fees paid to finalize a real-estate purchase or loan.

Closing costs are the one-time fees paid to finalize a home purchase or mortgage — typically 2–5% of the loan amount. They include lender fees, appraisal, title insurance, and taxes. Because they are large and non-recoverable, they are a major reason buying only pays off if you stay in a home long enough to spread them out.

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